Tag: pwc clients

Top Australian Companies and their auditors

by enthusiastDeloitte / EY / KPMG / PwC

Focusing our attention to Australia. We previously looked into the S&P 500 US auditors. We also examined FTSE 350 UK auditors in our previous posts.

Audit market share

ASX200 Index has the 200 largest companies in Australia by float adjusted market capitalization. We’ll now look at these 200 Companies to identify their auditors. EY leads with 60 audit clients followed by PwC with 57 clients. KPMG comes in third with 41 clients and Deloitte with 29 clients. Non big-4 firms collectively audit 11 companies.

Audit market share by sectors

Next looking at the break-down of the 200 companies by the various sectors and their auditors. All big-4 firms have share in all sectors except for utilities where Deloitte audits 3 of the 4 clients.

Big4 revenues

The revenues of the big4 audit firms across five years are provided below. PwC leads in total revenues followed by Deloitte, EY, and KPMG. PwC revenues for 2020 was AUD 2.6 billion while KPMG revenues for 2020 was AUD 1.9 billion. A difference of AUD 700 million between the top and last ranked firm.

Audit revenues of big4 firms

Looking at just the audit revenues for the big4 firms for FY20, PwC brings in audit fees of AUD 475 million. EY follows with AUD 417 million. KPMG brings in AUD 363 million. Deloitte brings in AUD 305 million.

Audit Revenue (AUD millions)PwCEYKPMGDeloitte
2020475417363305
2019443390356288
Growth7%7%2%6%

ASIC Inspection firms

Looking into the Audit Inspection reports by ASIC (Australian Securities & Investments Commission) for FY20, EY has the least number of findings among the big4 firms. Only 14% of the areas reviewed for EY had findings while 35% of the areas reviewed for Deloitte had findings. Based on review of 55 financial reports of listed and public interest entities audited by EY, only 2 entities made material changes to their financial statements. The findings for other big4 firms are summarized in the table below.

Audit FirmsDeloitteKPMGPwCEY
Key audit areas reviewed26393535
Findings identified91085
2020 (%)35%26%12%14%
2019 (%)32%33%18%22%
Financial reports reviewed45473655
Material changes based on inquiries4121
(%)9%2%6%2%

The link to the reports for Deloitte, KPMG, EY, and PwC is provided in this link.

Look into our blog posts for additional information on the audit clients for the big4 firms:

Deloitte Australia clients

KPMG Australia clients

EY Australia clients

PwC Australia clients

Subscribe this blog and stay updated on the latest happenings in the big4 audit space. If there is any specific items you want us to look into, please drop in a comment.

Do read into the other published blogs.

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PwC PCAOB Inspection Report

by enthusiastPwC

Last week PCAOB released its 2019 inspection report for PwC. Of the 60 audits reviewed, Part I.A deficiencies were identified in 18 of them (a deficiency rate of 30%). For 2018 and 2017, PwC’s deficiency rate were 25% and 24% respectively.

Year201920182017
Total audits reviewed605555
Audits with Part I.A deficiencies181413
Deficiency rate %30%25%24%

Part I.A deficiencies

Part I.A deficiencies break-down

Year201920182017
Both financial statement and ICFR audits13109
Financial statement only332
ICFR audit only212
181413

Deficiencies in financial statement audit include failure to perform sufficient testing related to an account, failure to obtain sufficient evidence due to overreliance on controls, and failure to evaluate data and assumptions in developing an estimate. Deficiencies in ICFR audit include nonidentification of controls related to significant account, nontesting of design and operating effectiveness of controls, and failure to test the accuracy and completeness of data used in controls.

Following are the audit areas with frequent Part I.A deficiencies. These are also some of the audit areas most frequently reviewed.

Year201920182017
Revenue and related accounts948
Income taxes400
Allowance for loan losses311
Investment securities320
Inventory321
Business combinations042
Loans and related accounts031

Interesting to note here is the increase in deficiencies with respect to Revenue while Business Combinations which was a major area of deficiency in 2018 and 2017 having no deficiency in 2019.

Looking at the break-up by Industry sector, 14 audits were reviewed from the Information technology sector with deficiencies identified in 5 of them (36%!). Most of audits reviewed were within the $1 billion to $2.5 billion revenue range (16 of them). 5 issuers with revenues exceeding $50 billion were reviewed with deficiency identified in 1 of them.

Part I.B deficiencies

Following Part I.B deficiencies were identified:

Non-ComplianceReviewedDeficiency
AS 1301, Communications with Audit Committees164
PCAOB Rule 3211, Auditor Reporting of Certain Audit Participants327
PCAOB Rule 3524, Audit Committee Pre-approval of Certain Tax Services121
PCAOB Rule 3526, Communication with Audit Committees Concerning Independence121

For me, the key statement on the report was “In connection with our 2019 inspection procedures for three audits, the issuers revised their reports on ICFR, and the firm modified its opinions on the effectiveness of the issuers’ ICFR to express adverse opinions and reissued its reports. In addition, in connection with our 2019 inspection procedures for one audit, the issuer restated its financial statements, and the firm revised and reissued its report.” So some of the PCAOB observations were significant enough for PwC to go back to their client and revise its previously issued opinion.

Quick thing to note here is that in releasing the PwC 2020 Audit Quality report, Wes Bricker, PwC Assurance Leader mentioned that for 2020, only 1 of the 52 engagements reviewed has a Part 1.A deficiency. So be on the look out for the next year report (0.02% deficiency!!).

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Q4 Big4 Auditor Changes

by enthusiastAuditor changes

Summarizing all the auditor changes in Q4’2020, EY made the biggest gain with 9 new clients while losing only one client. Deloitte, KPMG, and PwC gained 7,5, and 3 clients respectively. KPMG lost 5 clients in Q4’20 followed by PwC which lost 4 clients.

Big4 Auditor changes

Here is the list of changes in detail:

CompanyOld AuditorNew Auditor
Comstock Mining Inc.DeloitteDeCoria Maichel
Eagle PharmaceuticalsBDOEY
Adicet Bio IncPwCKPMG
Fubo TV IncSoldingerKPMG
Strattec Security CorporationDeloitteCrowe
Velodyne idarWithumKPMG
Multiplan CorpMarcumPwC
Lordstown Motors CorpWithumKPMG
Paya Holdings IncWithumEY
Wellbit IncPwCGT
PGT Innovations, Inc.KPMGEY
Shift Technologies Inc.GTDeloitte
BioCardia, Inc. KPMGPKF LLP
Enerpac Tool GroupPwCEY
MedAvail Holdings, Inc.WithumPwC
American Equity Inv. LifeKPMGEY
CIM Commercial Trust CorpBDODeloitte
Viatris IncKPMGDeloitte
SOC Telemed, Inc.MarcumPwC
Rexahn PharmaceuticalsBakerTillyEY
Fisker IncWithumDeloitte
MP Materials CorpWithumKPMG
Morgan Group Holding CoDeloitteRSM
Regis CorpPwCGT
Luminar TechnologiesKPMGDeloitte
QuantumScape CorpMarcumEY
Desktop Metal IncMarcumDeloitte
OpenDoor TechnologiesMarcumDeloitte
Skills IncWithumEY
Porch GroupWithumEY
Software Acquisition Group Inc.EYMarcum
Q4 2020 Auditor changes
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PwC Audit Clients in UK

by enthusiastPwC
Home » pwc clients » Page 2

PwC Fee Income

PwC UK had a fee income of 3.48 billion pounds in FY20 which is an increase of 0.5% from the prior year. For FY19 PwC UK had a fee income of 3.46 billion pounds. See below for a breakout of PwC fee incomes over the past five years. Fee income grew on an average of 4.8% over the past five years.

Looking at the break-down of fee income among audit clients and non-audit clients we notice that direct audit fees has increased on an average by 6% while non-audit services to audit clients has decreased on an average by 8%. Advisory income has increased on an average by 7% for 5 years. The table below shows the break-down in millions pounds.

PwC Quality Report

PwC’s UK 2020 Transparency report mentions that of the 17 audits reviewed, 11 (65%) audits were graded as good or limited improvements needed. 5 (29%) audits were graded as improvements needed. 1 (6%) audit needed significant improvement.

The Financial Reporting Council (FRC) published its latest inspection reports on PwC in July 2020. Of the 17 audits reviewed, 11 (65%) were graded as good or requiring limited improvements. 5 (29%) and 1 (6%) audits were graded as improvements required and significant improvements required respectively. For FTSE 350 audits, of the 12 audits reviewed, 8 (67%) were graded as good or requiring limited improvements. 3 (25%) and 1 (8%) audits were graded as improvements required and significant improvements required respectively. The summary of PwC’s inspection results for the past five years is noted below. In 2016, 82% of audits were graded as good vs. 67% in 2020.

PwC FTSE 350 Clients

PwC audits 95 of the 350 FTSE companies bringing in a total revenue of 336 million pounds. HSBC Holdings is the biggest client which brings in revenue of 110 million pounds, i.e. 33% of the total FTSE 350 audit fees. PwC has held the role of HSBC auditor for 5 years and will remain auditor until 2025 when the audit has be rotated per European rules on mandatory rotation. All 95 PwC clients and their audit fee is included in the below graphic.

The top 25 FTSE 350 audit clients of PwC in UK in the order of audit fee revenues are as follows:

CompanyAuditorTotal fees ('000) GBP
HSBC Holdings plcPwC110,700
Lloyds Banking Group plcPwC26,900
Aviva plcPwC21,900
Rio Tinto plcPwC14,490
Diageo plcPwC12,100
AstraZeneca plcPwC11,245
Rolls Royce Holdings PlcPwC11,000
G4S PlcPwC10,000
Pearson plcPwC7,000
Mondi PlcPwC5,100
Intertek Group plcPwC4,700
Coca-Cola HBC AGPwC4,487
Carnival plcPwC4,377
Johnson Matthey PlcPwC4,000
Bunzl plcPwC3,700
Weir Group plcPwC3,400
Babcock International GroupPwC3,200
ContourGlobal plcPwC3,170
Burberry Group plcPwC3,100
Vivo Energy PlcPwC2,974

Post a comment on any other metric you would like to know about EY UK or if you need this dataset. Look into our other blog posts on PwC, KPMG, and Deloitte UK. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.

Do read our other blog posts.

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PwC audit clients in the US

by enthusiastPwC
Home » pwc clients » Page 2

PwC is one of the biggest audit firms in the world. They operate through a network of firms across the world. PwC recently reorganized its assurance and tax services as “Trust Solutions.” The services under Trust solutions for PwC are (1) Financial Statement Audit (2) ESG Reporting Services (3) Tax Services (4) Digital Assurance and Transparency (5) PwC Private (6) Governance Insights Center.

A closer look at PwC’s audit clients within S&P 500 companies. PwC’s biggest market share is within the Materials industry where it audits 54% of the companies in this market. Followed by Healthcare and Energy where PwC audits 43% and 35% of the total companies. In dollar terms, the largest share of fees for PwC comes from the Financial sector, $585 million. One sector where PwC lags is the Real Estate market where it audits only 13% of the companies in this sector. In the next few posts, we’ll go over some of the largest audit clients of PwC and their market presence in various sectors.

The below chart shows PwC’s share of major US audit clients spread across the different Industry sectors

GICS SectorPwC # clientsTotal Industry (#)%PwC audit fees ($ M)Total Industry audit fees ($ M)%
Financials196629%585.191438.8941%
Health Care266143%335.71848.3240%
Information Technology207128%279.52841.7233%
Industrials176925%253.68876.4929%
Materials152854%229.12393.8258%
Consumer Discretionary156224%199.56568.6435%
Communication Services72232%153.34471.7933%
Energy92635%144.59297.3949%
Consumer Staples113333%127.75425.4930%
Utilities92832%98.19263.4037%
Real Estate43112%18.47141.1713%
Grand Total1524972,425.116567.13

Do read our posts on PwC’s audit clients across the various US States and their corresponding Audit Fees. Subscribe to our posts for information on Big4 firms. If there is some data point that you would like us to analyze, just drop in a comment. We are starting a new blogpost to collect the salary data to help all current and prospective employees of accounting firms. So if interested, update the form and results will be published soon.

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US Audit clients in Switzerland, Netherlands and Bermuda

by enthusiastDeloitte / EY / KPMG / PwC
Home » pwc clients » Page 2

Check out our earlier blogposts on the Big4 accounting firms and their audit clients across the various states in the US. The last grouping is US S&P 500 Companies with headquarters located outside the US. PwC audits most of these companies. The largest among them is Chubb Limited which pays PwC an audit fee of $28.73 million.

CompanyHeadquarters LocationAuditorTotal ($ million)
Chubb LimitedZurich, SwitzerlandPwC        28.73
Schlumberger Ltd.Curaçao, Kingdom of the NetherlandsPwC        17.60
TE Connectivity Ltd.Schaffhausen, SwitzerlandDeloitte        12.22
LyondellBasellRotterdam, NetherlandsPwC        11.60
Mylan N.V.Amsterdam, NetherlandsDeloitte        11.10
Everest Re Group Ltd.Hamilton, BermudaPwC          6.29
Garmin Ltd.Schaffhausen, SwitzerlandEY          3.19

Check out our other blogposts for a listing of the top 25 clients of PwC, Deloitte, EY, and KPMG in the US. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.

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Big4 clients in Kentucky, Louisiana, Rhode Island, Oklahoma, Oregon, Maine, Iowa, and Alabama

by enthusiastDeloitte / EY / KPMG / PwC

Check out our earlier blogposts on the Big4 accounting firms and their audit clients across the various states in the US. We are now left with the last grouping of states. The prominent among them is CVS, headquartered in Rhode Island. EY brings in an audit revenue of $33.54 million each year from CVS.

CompanyHeadquarters LocationAuditorTotal ($ million)
CVS HealthWoonsocket, Rhode IslandEY        33.54
CenturyLink IncMonroe, LouisianaKPMG        17.91
Principal Financial GroupDes Moines, IowaEY        14.72
Micron TechnologyBoise, IdahoPwC        14.20
Textron Inc.Providence, Rhode IslandEY        12.68
Humana Inc.Louisville, KentuckyPwC        10.25
Regions Financial Corp.Birmingham, AlabamaEY          9.82
Entergy Corp.New Orleans, LouisianaDeloitte          9.52
Williams Cos.Tulsa, OklahomaEY          9.00
Hasbro Inc.Pawtucket, Rhode IslandKPMG          8.07
Citizens Financial GroupProvidence, Rhode IslandDeloitte          7.32
Yum! Brands IncLouisville, KentuckyKPMG          7.18
Devon EnergyOklahoma City, OklahomaKPMG          3.93
Vulcan MaterialsBirmingham, AlabamaDeloitte          3.22
Brown-Forman Corp.Louisville, KentuckyPwC          3.12
FLIR SystemsWilsonville, OregonKPMG          2.93
Lamb Weston Holdings IncEagle, IdahoKPMG          2.93
IDEXX LaboratoriesWestbrook, MainePwC          2.51
ONEOKTulsa, OklahomaPwC          2.46
PaycomOklahoma City, OklahomaGT          1.32

Check out our other blogposts for a listing of the top 25 clients of PwC, Deloitte, EY, and KPMG in the US. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.

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Big4 clients in Arizona, Nebraska, and Arkansas

by enthusiastDeloitte / EY / KPMG / PwC
Home » pwc clients » Page 2

There is a total of 10 S&P clients in Arizona, Nebraska and Arkansas. EY leads the pack with $57 million in audit fees and 5 audit clients. Deloitte has the biggest client in region: Berkshire Hathaway from Nebraska which alone bought in audit fees of $49 million. Another big client in the region is Walmart which paid EY $27.75 million in total audit fees for FY 20. PwC’s lone audit client in the region is Tyson Foods.

Auditor# of companies auditedTotal fees ($ million)%
EY556.6843%
Deloitte355.9942%
KPMG111.379%
PwC18.106%

Full details of the audit client, location, and total audit fees for FY 20 is noted below:

SecurityHeadquarters LocationAuditorTotal ($ million)
Berkshire HathawayOmaha, NebraskaDeloitte49.00
WalmartBentonville, ArkansasEY27.75
Freeport-McMoRan Inc.Phoenix, ArizonaEY13.68
NortonLifeLockTempe, ArizonaKPMG11.37
Microchip TechnologyChandler, ArizonaEY9.13
Tyson FoodsSpringdale, ArkansasPwC8.10
Republic Services IncPhoenix, ArizonaEY4.21
Union Pacific CorpOmaha, NebraskaDeloitte3.73
Pinnacle West CapitalPhoenix, ArizonaDeloitte3.26
J. B. Hunt Transport ServicesLowell, ArkansasEY1.90

Look at our other blog posts for a listing of big 4 accounting firms and their respective S&P 500 audit clients. Subscribe to our posts for up to date information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.

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Big4 audit clients in Colorado, Nevada, and Utah

by enthusiastDeloitte / EY / KPMG / PwC

There are 13 S&P companies headquartered in Colorado, Nevada, and Utah. There are 8 S&P companies in Colorado with Nevada and Utah having 3 and 2 companies respectively. EY audits 7 of the largest companies within these three states bringing in a total audit fee of $37 million. Here are the details for the companies in this region.

Auditor# of companies auditedTotal fees ($ million)%
EY736.7943%
PwC219.0522%
Deloitte217.4720%
KPMG212.6315%

PwC’s biggest audit client in these three states is Ball Corp which brings in $13.60 million in audit fees. Newmont Corporation is EY’s biggest audit client which pays $12.8 million in audit fees.

CompanyHeadquarters LocationAuditorTotal ($ million)
Ball CorpBroomfield, ColoradoPwC13.60
Newmont CorporationDenver, ColoradoEY12.82
MGM Resorts InternationalParadise, NevadaDeloitte10.00
DaVita Inc.Denver, ColoradoKPMG8.77
Western Union CoEnglewood, ColoradoEY8.00
Las Vegas SandsLas Vegas, NevadaDeloitte7.46
Molson Coors Brewing CompanyDenver, ColoradoPwC5.45
Zions BancorpSalt Lake City, UtahEY5.31
Wynn Resorts LtdParadise, NevadaEY4.06
Dish NetworkMeridian, ColoradoKPMG3.87
Extra Space StorageSalt Lake City, UtahEY2.58
Apartment Investment & ManagementDenver, ColoradoEY2.11
UDR, Inc.Highlands Ranch, ColoradoEY1.92

Look at our other blog posts for a listing of big 4 accounting firms and their respective S&P 500 audit clients. Subscribe to our posts for updated information on Big4 firms and if there is some data point that you would like us to analyze, just drop in a comment.

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